After customer care services and medical transcription, outsourcing of human resource services

or HR BPO was emerging as the next big opportunity for Indian BPOs with the global market
in this segment estimated at $40-60 billion per annum, experts said on Monday.

“HR BPO comes to about 33% of the outsourcing pie. India has immense potential as more
than 80% of fortune 1,000 companies will discuss offshore BPO as a way to cut costs and
increase productivity,” said V Chandrasekaran, co-founder of Secova eServices Ltd, the first
Indian HR BPO.

Sensing the potential, global BPO players including Fidelity, Exult and Hewitt have begun
setting up operations in India. However, most HR BPO players had not leveraged the offshore
advantage as yet, he told PTI.

Research firm Gartner has forecast HR BPO to reach $51 billion and represent 39% of all BPO
revenue by 2004-end.

“HR opportunity is absolutely new. It is a sunrise opportunity with huge potential,” Mr

Chandrasekaran, who formed Secova eServices to tap this potential, said. “Our initial focus
will be only on HR administration, benefits and payroll, in the mid-market which accounts for
$13.2 billion.”

In HR BPO, revenues depend on the number of employees the clients have. This is in sharp
contrast to a typical customer care centre, where bills are charged on the workers servicing a
client in the BPOs. Despite huge potential, not many companies have leveraged the offshore
strategy. “The main reasons for not leveraging the offshore benefit have been companies being
undercapitalised or not knowing enough about the offshore business

By outsourcing your HR functions to COMPANIES can accrue fundamental benefits to your

organization. Some of them are:

• Enables you to focus on core operations.

• Delivers cost savings, directly or indirectly.
• Helps you aim to achieve business goals rather than getting bogged down by processes.

IT HELPS TO provides business owners with expert support and guidance in all areas of
human resource solutions - employee relations, payroll and taxes, health benefits
administration, workplace safety, statuary compliance, and much, much more. By outsourcing
human resources to us, you get to devote your internal resources and capital funds to profit-
driven activities, without sacrificing important new technology, training and development,
employee relations, or more.
RANGE OF SERVICES BY THE FIRMS WHO DO OUTSOURCING FOR THE
COMPANIES:

they provide Companies with whole range of HR support. The services offered are aimed
towards providing you the top of line services. HR support offered is:

1. Recruitment Solution
2. OCSS
3. Mass Recruitment Management
4. Training Support
5. HR Outsourcing
Example for proposal for HR outsourcing:-

PROPOSAL FOR HR OUTSOURCING

PROPOSAL INCLUDES

A) SCOPE OF THE PROJECT.

B) Other activities not covered in the project but can be implemented on

chargeable basis.
A) SCOPE OF THE PROJECT

1. Policy Formation

 Recruitment policy
• Procedure for recruitment
• Test conducted before selecting a candidate
• Interview evaluation process.
• Terms of appointment
 Induction Policy
• A formal welcome of the candidate
• Company Information
• Information regarding HR policies
• Organizational Information
• Departmental Information
 Code of Conduct
• What are norms to behave in the organization and at
site
• How to deal with customers
• How to handle confidential matters
• Provision for the use of office property.
 Leave Policy
• What are the types of leave in the organization
• What is the procedure to take the leave
• What is the policy regarding earned leave.
• List of Holidays.
 Compensation Policies
• Grading and designation
• Salary Structure
• Allowance Structure
• Reimbursement
 Training And Development
• Identifying the training need for an Employee
• Developing the training process
• Assisting in training( who will give the
training, where training will be conducted)
 Grievance Policies
• This policy is to resolve the problems of the
employee.
• Implementing a procedure to solve the
problems of the an employee
  Displanary Policies
• If an employee violates the rules of the
organization, then what should be the proper procedure to take action
against that employee.
• It also states the kind of action taken against
the employee
 Termination of employment Policy
• What is the separation process
• Exit Interview
• Notice period
• Experience certificate
 Policy for temporary
Employee
• What are the
procedure for appointing the temp staff
• Terms and condition
for the temp employee
• Legalities involved in
hiring the temp staff
• Policies for the
vendors.
 Staff
Movements and transfers
• How
transfers are done
• What
are the policies for outstation travel
• What
are the travel expenses given to the employee

2. Organizational Structure

 Defining the Job Role

• What is the exact Job profile of the employee
• What the roles and responsibility of the employee
 Defining the Hierarchy
• What is the reporting structure in the
organization

3. HRIS
 Creating a database wherein all the details of Employees are gathered. HRIS
contains the information regarding employee’s personal details, leave record,
attendance record, appraisal record, Disciplinary record etc.
  Making A standard document of employee Information
 Useful in appraisals, promotion, internal Resourcing, cross functional
transfers, etc.

4. Compensation Management

 Designing of salary structure

Variable and Non Variable component
Taxable and Non Taxable component

5. Performance Appraisal
Performance Appraisal Process formation:
Understanding the need of the client and designing the performance Appraisal system.
Some suggested Performance Appraisal Systems are as below

 360 Degree Feedback

 Comparative Standards or Multi-person Comparison
 Critical Incidents
 Graphic Rating Scale
 Behaviorally Anchored Rating Scales
 Management by Objectives

Performance Appraisal System Implementation:

Implementation of the proposed Performance Appraisal System. Activity would include

 Formalizations of Budgets and actual process with the management team

 Training the Managers on PMS
 Guiding them in conducting the PMS for their team members
 Taking part in actual PMS with the managers and team members
 Rationalizing/normalization of the appraisals to fit within budgets.
 Actual Rollout of appraisals
 Formal report to the management on the activity.

6. Day to day HR support and Activities

 Induction and Joining formalities

 Grievance handling
 Counseling
 Interview Scheduling
 Time and Attendance for Payroll
 Other General HR activities
B) Other activities not covered in the project but can be implemented on
chargeable basis

1. Recruitment

 Recruitment across all levels of the organisation, specifically Turnkey Recruitment for
entry point staffing at the operating level and Contingency Recruitment Practice for
Mid to senior level none search positions and Cornell Executive Search for Senior
Level Search mandates.

 Recruitment consultants at YORS CORP are verticalised across industry segments with
the largest pool of industry specific recruiters belonging to ITES/ BPO Vertical and by
skills, recruiting sales and customer service staff.

 Consistent investment in branding with strong online presence, print media

advertisements, FM radio, and event based recruiting and ongoing programs like Youth
Connect, to ensure funnel size of candidates to sufficiently meet with emerging client
requirements.